(The Epoch Times)—The U.S. gross national debt surpassed $36 trillion on Thursday, according to Treasury data, while a Federal Reserve report showed intensifying concern about America’s fiscal health and its broader implications for financial stability.
The massive debt milestone was reached just over three months after the previous $35 trillion benchmark, highlighting the rapid accumulation of federal borrowing in recent years. It comes as policymakers brace for renewed debates over spending and taxation, with the incoming Trump administration and the 119th Congress having to contend with the nation’s fiscal trajectory.
“As if lawmakers needed any other reasons to take America’s fiscal health seriously, the gross national debt of the United States has now officially reached $36 trillion,” Maya MacGuineas, president of the Committee for a Responsible Federal Budget (CRFB), said in a statement. “Government borrowing is becoming as certain as the changing of the seasons these days.”
MacGuineas highlighted the risks of rising debt, including slower economic growth, higher inflation, and increased interest rates. She warned that high debt loads constrain fiscal flexibility, hampering the government’s ability to respond to economic downturns or global crises, pointing to $13 trillion in projected interest payments over the next decade as a stark example.
“The incoming Trump Administration and Members of the 119th Congress face several fiscal hurdles from the moment they take office–starting with the reinstatement of the debt ceiling in January and a $1.7 trillion PAYGO scorecard waiting to greet them,” MacGuineas said. “The way they approach that and other crucial decisions ahead like the expiration of discretionary spending caps and the 2017 tax cuts, as well as how they choose to offset the costs of their new policies, will determine our fiscal health for a long time.”
Meanwhile, respondents to a New York Federal Reserve survey that was cited in the Fed’s newly released semi-annual Financial Stability Report identified U.S. fiscal debt sustainability as the most frequently cited near-term risk to financial stability, overtaking concerns about persistent inflation and monetary tightening.
“Concerns surrounding US fiscal debt sustainability were atop the list this survey, followed by escalating tensions in the Middle East and policy uncertainty,” the report’s authors wrote. Fears of a potential U.S. recession and a global trade war also moved up in importance in the latest survey compared to the one carried out in spring.
In the Fed’s discussion of the near-term risks identified in the survey, which was conducted among some two dozen financial sector participants and observers from August to October, the central bank noted that rising geopolitical tensions and potential economic slowdowns could amplify vulnerabilities tied to the nation’s fiscal challenges and lead to “broad adverse spillovers.”
Escalation in conflicts such as the Middle East crisis or the war in Ukraine could disrupt global energy and commodity markets, triggering inflationary pressures and heightened market volatility. The Fed also warned of the potential for a sharp downturn in economic growth, which could lead to steep corrections in asset prices, particularly in overvalued sectors like equities and real estate.
High levels of corporate and nonbank financial institution leverage could exacerbate financial stress, while elevated public debt might limit the government’s ability to respond effectively to such shocks, the report’s authors noted. Further, the report underscored the growing risk of cyberattacks, which could disrupt the financial system by exploiting interdependencies among institutions and components of market infrastructure.
The Fed’s own financial stability assessment focused on a framework of risks across four key areas: asset valuations, borrowing by households and businesses, leverage in the financial sector, and funding risks.
The report noted that asset values “remained elevated,” with liquidity in financial markets remaining low, raising the risk of strain during periods of volatility. Vulnerabilities from business and household debt were described as “moderate,” though delinquencies in auto and credit card loans were elevated.
The banking system was described in the financial stability report as “sound and resilient,” though banks’ market-adjusted capital levels improved only “modestly” and so remain sensitive to interest rate changes. Hedge fund leverage was at its highest level in over a decade, while vulnerabilities in some short-term investment vehicles continued to grow.
At Last, a Company With Integrity in the Gold IRA Industry
For several years, I’ve been vetting out precious metals companies in search of the best. I believe in gold and silver but it’s hard to find integrity in the Gold IRA industry. The vast majority operate with shady tactics and gigantic spreads that take advantage of Americans who simply want to protect their life’s savings.
I’ve found a handful that I like and I’ve worked with some of them. By no means would I “unrecommend” them because, again, I vetted them out and found them to be above the fold. Unfortunately, it isn’t hard to be better than the rest when the rest are so darn awful.
After years of searching, I finally found a company that truly operates with integrity. Augusta Precious Metals has three important attributes that set them far above the competition:
- Non-Commissioned Sales Team: I cannot stress how important and unique this is. With just about every other company in the Gold IRA industry, the sales teams make commission from every account they open. This means they steer their clients toward the gold and silver products with the highest commission. With Augusta Precious Metals, the team is solely focused on putting the best gold and silver for their clients into their IRA. They get paid to serve the best interests of the Gold IRA client, NOT their own commission pay.
- Incredibly Low Fees: Most Americans would be shocked if they knew the spread other Gold IRA companies charge. Augusta charges just 5% versus up to 45% elsewhere.
- No Pressure, No Gimmicks: There’s an understanding among most in the Gold IRA industry that fear and pressure is the way to go. Augusta Precious Metals takes a sober approach when working with clients because they hold integrity in the highest possible regard. This is why they don’t offer gimmicks like “free” or “bonus” silver. It’s also why they do not apply pressure tactics to get quick sales. Their educational and transparent approach to doing business is exceedingly rare in the Gold IRA industry.
This economic nightmare we are living in is WAY beyond simply risking our financial stability. Whoever wrote this title is the master of the understatement. We will shortly not even be able to keep up with the INTEREST payments on the national debt, much less the principal. Right now, for the first time in American history, those interest payments exceed our military budget! Let THAT sink in for a moment. We have gone from the world’s largest creditor nation to the world’s largest debtor nation, thanks to the secular left. With a necessary assist from those who call themselves Christians and conservatives. America is over.
…every four seconds the interest on the outstanding balance of the National Debt of $36,000,000,000,000.00 is over $100,000.00…that’s $100,000.00 every 4 seconds…there is 15 x 4 = 60 seconds ( 1 minute) that’s 60 X $100,000.00 = $600,000,000.00 EVERY MINUTE of every Hour…there are 24 hours every day…24 (hrs) X $600,000,000.00 = $14,400,000,000.00 a Day…there are 365 days a year…365 (1 yr) X $14,400,000,000.00 = A WHOLE LOT OF MONEY… (sorry, my calculator wont go any farther)…and remember that is ONLY THE INTEREST ON THE PRINCIPAL AMOUNT OF THE CURRENT NATIONAL DEBT…That actually increases exponentially over the course of the year…
…FOLKS WE ARE SCREWED…OUR COUNTRY IS OUT OF CONTROL SPENDING MONIES WE DON’T HAVE ON PROTECTING OTHER NATIONS BORDERS AND PAYING FOR THE LIVING AND MEDICAL COSTS OF THE 25,000,000 FOREIGN INVADERS THAT OBAMA AND BIDEN HAVE ENCOURAGED TO COME INTO OUR NATION ILLEGALLY…WE ARE SCREWED AND PROBABLY AS A NATION MORALLY AND FINANCIALLY BANKRUPTED…